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Dodd rate-freeze bill may move quickly to a vote

WASHINGTON (10/28/09)--Legislation that would freeze credit card interest rates and fees until the recently-passed Credit Card Accountability, Responsibility and Disclosure (CARD) Act comes into full effect has been fast tracked and could soon be voted on in the Senate. Commenting on S.1927, introduced on Monday, Sen. Chris Dodd (D-Conn.) said that the bill was an effort to combat the practices of credit card companies that “have been jacking up rates in a last ditch effort to squeeze customers before all of the bill’s provisions can take effect.” The legislation would end many of the abuses of credit card companies that are “looking for ways to get around the protections this Congress and the American people demanded” and would “further protect customers today,” Dodd added. The Credit Union National Association is currently analyzing the legislation. "We're taking a look at the bill and talking with our members about the potential impact if would have on their operations," said Ryan Donovan, vice president of legislative affairs. The House Committee recently passed legislation that accelerates the effective date of the CARD Act from Feb. 22 to Dec. 1, and that legislation is awaiting a vote in the full House or Representatives. CUNA worked with legislators to add an amendment that would exempt depository institutions with under 2 million credit cards in circulation from the expedited effective dates contained in the bill. CUNA also supported an amendment that would strike expedited effective dates for gift cards from the bill.